Heperu Pty Limited v Belle [No 2]

Heperu Pty Limited (the appellants) appealed to the Court of Appeal of New South Wales against orders made by the Equity Division concerning the tracing of misappropriated funds. The dispute involved the assessment of a traceable benefit in properties held by the respondent, Belle, following the misappropriation of funds.

The primary legal issue before the Court of Appeal was the appropriate method for assessing the value of any traceable benefit derived from misappropriated funds that had been paid into the respondent's Westpac account and subsequently retained in relevant properties. The Court was required to determine how to quantify this benefit for the purpose of a remedy.

The Court of Appeal allowed the appeal, setting aside the previous orders. It remitted the matter to the primary judge for a fresh assessment of the value of any traceable benefit in the properties held by the respondent at the time she received notice of the misappropriation. The primary judge was given discretion to assess the amount of this benefit, determine the costs of the initial hearing and the assessment, and order payment of any identified benefit. The parties were directed to file written submissions on costs.